Retail Surge: Customer Data Analysis

Product Categories making the most profit

Businesses have faced various challenges especially during the past global inflation. This has in turn heightened the level of competition in the market thus making smaller businesses to go under. Retail surge is an online retail company that deals in various types of wears. It has also been facing a lot of competition from other companies that are offering the same products. The retail company deals in clothes and footwear for both men and women and boys and girls. To be able to fight the competition and remain stable in the market, it sought to collect information from their operations including their customers. The aim of collecting these information was to better understand the market trend and hence their customers. The results from this data would form the basis of their various decisions making.

Which product category is making the most profit?

To be able to establish the products that make the most profit, a graph of total profit per product is suitable. This is because the products and their amount of profit will be visualized hence easy interpretation.

Which product category cost the most?

To be able to establish the products that cost the most, a graph of total cost per product is suitable. This is because the products and their amount of profit will be visualized hence easy interpretation.

Is there a difference in payment methods?

To establish whether there is a difference in the payment methods, an independent sample t-test is employed. This type of test statistic is employed since there are only two variables involved; PayPal and credit card.

Are there any differences in the user groups on all of the customer attitudes? (6 outcomes)

To establish whether there is a difference in the user groups, an ANOVA test is employed. This type of test statistic is employed since there are more than two variables involved; light users, medium users and heavy users.

Are there any differences in gender on all of the customer attitudes?

To establish whether there is a difference in gender on customer attitudes, an independent sample t-test is employed. This type of test statistic is employed since there are only two variables involved; males and females.

The figure above shows the mean profit total for nine products as observed in the bar graph above. The product categories that are making most profit are the customised products. The customised products are making a mean profit total of 25 dollars. This is followed by men’s shoes. These make a mean profit total of about 16 dollars. The third best product category was the girls’ shoes. The girls’ shoes category made a mean profit total of 7 dollars.

The simple bar graph above is of the mean cost of various goods. The goods vary from customised goods to boys’ clothing. Again, it can be observed that the product category that costs the most among the nine products is the customised products. They cost about 9.9 dollars. The next class of product that also cost more is the girls’ shoes. These products cost 8 dollars. The third costly product is the women’s shoes. This category of product costs 5 dollars.

The figure above shows a boxplot of two payment methods; PayPal and credit card. With 95% confidence interval, the total purchases paid by PayPal and credit card were about 3.4 and 3.6 respectively. Since these two values overlap within the same boundary, it can be concluded that there is no significant difference in the two payment methods.

Descriptives
	N	Mean	Std. Deviation	Std. Error	95% Confidence Interval for Mean	Minimum	Maximum
Lower Bound	Upper Bound
Knowledge of the company	Light Users	104	2.85	1.711	.168	2.51	3.18	1	6
Medium Users	204	4.90	1.664	.116	4.67	5.13	2	7
Heavy Users	284	6.45	.601	.036	6.38	6.52	5	7
Total	592	5.28	1.840	.076	5.14	5.43	1	7
Satisfaction with the company	Light Users	104	2.54	1.157	.113	2.31	2.76	1	6
Medium Users	204	5.39	1.033	.072	5.25	5.53	2	7
Heavy Users	284	6.07	.776	.046	5.98	6.16	2	7
Total	592	5.22	1.585	.065	5.09	5.34	1	7
Preference for Nike	Light Users	104	2.46	1.507	.148	2.17	2.75	1	6
Medium Users	204	2.82	1.572	.110	2.61	3.04	1	5
Heavy Users	284	4.45	1.654	.098	4.26	4.64	1	7
Total	592	3.54	1.826	.075	3.39	3.69	1	7
Purchase Intention for Nike	Light Users	100	4.16	1.835	.184	3.80	4.52	1	7
Medium Users	204	4.04	1.893	.133	3.78	4.30	2	7
Heavy Users	284	5.01	1.195	.071	4.87	5.15	3	7
Total	588	4.53	1.648	.068	4.40	4.66	1	7
Would recommend company to a friend	Light Users	104	3.46	1.131	.111	3.24	3.68	2	6
Medium Users	204	4.92	.494	.035	4.85	4.98	4	6
Heavy Users	284	6.35	.477	.028	6.29	6.40	6	7
Total	592	5.35	1.260	.052	5.25	5.45	2	7
Loyalty for Nike	Light Users	104	3.92	1.499	.147	3.63	4.21	2	6
Medium Users	204	4.14	1.563	.109	3.92	4.35	2	6
Heavy Users	284	3.92	1.575	.093	3.73	4.10	2	7
Total	592	3.99	1.559	.064	3.87	4.12	2	7

Product Category with highest Cost of Goods (COGS)

Test of Homogeneity of Variances
	Levene Statistic	df1	df2	Sig.
Knowledge of the company	Based on Mean	137.679	2	589	.000
Based on Median	43.167	2	589	.000
Based on Median and with adjusted df	43.167	2	366.541	.000
Based on trimmed mean	130.226	2	589	.000
Satisfacition with the company	Based on Mean	34.012	2	589	.000
Based on Median	19.318	2	589	.000
Based on Median and with adjusted df	19.318	2	543.743	.000
Based on trimmed mean	28.470	2	589	.000
Preference for Nike	Based on Mean	3.007	2	589	.050
Based on Median	2.032	2	589	.132
Based on Median and with adjusted df	2.032	2	534.316	.132
Based on trimmed mean	3.259	2	589	.039
Purchase Intention for Nike	Based on Mean	51.499	2	585	.000
Based on Median	48.655	2	585	.000
Based on Median and with adjusted df	48.655	2	555.807	.000
Based on trimmed mean	49.574	2	585	.000
Would recommend company to a friend	Based on Mean	155.697	2	589	.000
Based on Median	75.229	2	589	.000
Based on Median and with adjusted df	75.229	2	489.408	.000
Based on trimmed mean	152.051	2	589	.000
Loyalty for Nike	Based on Mean	.438	2	589	.645
Based on Median	1.134	2	589	.322
Based on Median and with adjusted df	1.134	2	466.890	.323
Based on trimmed mean	.333	2	589	.717

Table 1

Homogeneity of variance normally tests assesses the Lavene’s test. The Lavene’s test employs F-test to test the null hypothesis that there is equality of variance across the groups (Derrick, Toher, & White, 2017). In regard to this therefore under the item “knowledge of the company” the p-value is equal to 0.00. This value is less than 0.05 thus violating the assumption that variance is equal in all the groups under the item “knowledge of the company”. The conclusion therefore is that there is a significant difference in the variance across this group in terms of customer attitudes. Other groups that have the same conclusion include “satisfaction with the company”, “would recommend company to a friend” and “purchase intention for Nike”. However, other groups had different conclusions. Groups like “loyalty for nike” and “preference for Nike”. These had p-values greater than the alpha values as can be observed from table 1 above. Since the p-values in these groups are greater than the level of significance, then we fail to reject (Leigh, 2008) the null hypothesis and conclude that there is equality of variance across these two groups in terms of customer attitudes. ANOVA
	Sum of Squares	df	Mean Square	F	Sig.
Knowledge of the company	Between Groups	1034.437	2	517.218	315.401	.000
Within Groups	965.888	589	1.640
Total	2000.324	591
Satisfaction with the company	Between Groups	959.259	2	479.630	538.032	.000
Within Groups	525.065	589	.891
Total	1484.324	591
Preference for Nike	Between Groups	461.224	2	230.612	89.966	.000
Within Groups	1509.803	589	2.563
Total	1971.027	591
Purchase Intention for Nike	Between Groups	129.379	2	64.690	25.830	.000
Within Groups	1465.070	585	2.504
Total	1594.449	587
Would recommend company to a friend	Between Groups	692.399	2	346.199	829.181	.000
Within Groups	245.919	589	.418
Total	938.318	591
Loyalty for Nike	Between Groups	6.460	2	3.230	1.331	.265
Within Groups	1429.513	589	2.427
Total	1435.973	591

Table 2

Attitude 1: Knowledge of the company

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